Exchange-traded funds (ETFs) are the talk of the town – and rightfully so – after the U.S. Securities and Exchange Commission (SEC) approved the listing of investment products this week. Meanwhile, the spot Bitcoin ETF market continued its recovery on the one hand, marked by a second consecutive week of positive inflows.
This streak of positive inflows marks a complete turnaround from previous weeks, when investment activity was dangerously low. However, this recent change reflects an enhance in investor confidence over the past two weeks.
Bitcoin Spot ETF: $252 million in net inflows in a single day
On Friday, May 24, the US Bitcoin ETF spot market recorded another day of positive inflows, marking the 10th consecutive day of significant investment in these funds. According to data from SoSoValueat the end of the week, the market had recorded a total net inflow of approximately $252 million.
All told, BlackRock amassed a significant percentage of the day’s total investment, with the IBIT ETF seeing inflows of $182 million. Meanwhile, Grayscale Bitcoin Trust (GBTC) failed to attract any capital on Friday, ending the week with zero daily outflows and inflows.
Other ETF issuers such as Fidelity, Bitwise and ARK Investment also saw impressive inflows on Friday. Most notably, Fidelity’s FBTC took second place to BlackRock’s fund after raising about $43.7 million on the last day of the week.
More importantly, this positive inflow day means that the spot Bitcoin ETF market accumulated significant investments every day for the second week in a row. And after Friday’s close, net inflows last week totaled an impressive $1.06 billion.
This continued positive trend in capital inflows suggests that investor confidence in Bitcoin ETFs may return to an all-time high. The last time there was sustained positive capital inflow into these products, the price of Bitcoin rose to a recent record high.
With Ethereum spot ETFs already on the cusp of US trading, cryptocurrency trading products seem to be all the rage these days. They may just be the catalyst that the cryptocurrency market – Bitcoin in particular – needs to restart what’s left of the bull cycle.
Bitcoin price at a glance
At the time of writing, Bitcoin’s value is $68,868, refindicating a 2.5% price enhance over the last 24 hours. According to CoinGecko data, the main cryptocurrency increased by 3% on a weekly basis.
Featured image from iStock, chart from TradingView
